Parents around the country can relate when the cameras pan away from the Olympic athletes competing in their events to the reaction of the parents in the stands, covering their eyes with their hands hoping and praying that their children do well. Watching gymnast Aly Raisman’s parents during her uneven bar routine was priceless – they twisted in their seats, switching from wide-eyed attention to looking like they were writhing in pain, then to expressions of relief and joy as their daughter finished strong. In every parent’s face, you could see the depth of all the emotions and imagine the sacrifices they made for their young athletes.

We all hope the lessons we teach our children will stick. As a financial planner, teaching my kids to manage their cash flow, stay out of debt, establish good credit, and invest for long-term goals has always been a priority. My husband and I started early to instill good fiscal management skills with our kids. Money permeates just about every area of our lives, affecting future job possibilities, happiness in marriage, long-term financial stability, and even physical health. I wondered what lessons really stuck with my kids.

My 24-year-old son Brian enlisted in the US Navy 3 ½ years ago and is now an E-5 chemist. He was visiting us on a break so I took the opportunity to ask him. I wanted to know what worked and what didn’t from his dad, step-dad, and me.

What worked:

Weekly allowance. Brian felt that managing his allowance taught him his most valuable lesson—how to manage his money well and live below his means. We started when he was around six years old and could already understand some basic money concepts such as a dime being worth more than a nickel even though it was smaller. His step-dad and I gave him an allowance with an amount equal to his age each week—half he could spend and half went into a savings account at the bank or credit union. He could save his cash or spend it on what he wanted (within reason – veto authority by parents). We tied his allowance to chores, though many parents don’t. In our case, it was all or nothing because frankly I didn’t want to deal with a weekly negotiation of what percentage of chores were completed or not. Didn’t do chores, it was zero; did them, it was 100 percent.

Since he managed his own spending money, he really learned to stretch his dollars. For example, he loved video games, but bought used instead of new releases; a practice he continues today. He just shared that he recently purchased last year’s “Madden 2012” for $5 since the new “Madden 2013” is out and the price dropped by $45. He doesn’t mind playing last year’s games at all. He also gives himself an “allowance” for entertainment, but his limit is twice his age each week which he can afford.

Working for it. Brian’s dad practiced what I call “Reality Therapy.” If Brian wanted money from his dad, he had to do extra chores such as mowing a ¼ acre backyard or cleaning up junk at a rental property. He was paid based on the difficulty of the work performed. For example, Brian’s dad didn’t feel mowing was that tough so he paid him a wage of about $6 per hour. Digging up sod for a garden area, repairing a roof, and hauling junk to the dump were harder jobs that he would get $10-$12 per hour or a high daily rate for doing. Brian still understands the value of hard work and the value of a dollar.

What didn’t work.

Lack of consistency. It was a big job to consistently give Brian his weekly allowance in cash. Sometimes, I wouldn’t pay him regularly and lost track of what was due or not. This inconsistency sometimes led to apathy on his part. Today, it might be easier with the use of debit cards and transferring funds online, but I could have gone to the bank monthly and had been better organized with the cash. I think setting up simple systems is important for any type of ongoing program.

Taking the eye off the ball. Like many parents who are busy with their careers and families, I took my eye off the ball when Brian was in high school. He had a summer job and was paid in cash on a weekly basis instead of getting a paycheck. He pretty much spent every dime of his earnings on video games and music. In other words, he blew it. The CDs he bought ended up getting stolen so he didn’t have anything to show for it. I think the toughest thing for parents is to be consistent and keep up the money lessons week after week.

We all want our children to grow up to be money smart, so here are some tips for parents to help make that happen today:

Teach by experience. Most people learn best by doing. If you think about teaching kids about money, unless you provide money for them to work with, it just becomes a theoretical exercise. Kids understand the agony of not being able to buy what they want when they want it, and the joy of making their purchase when they have saved up for it – that lesson sticks when it’s their own money.

Take advantage of learning touch points everywhere. Make regular life events into learning experiences to teach your child to manage their money. At a family outing, such as a baseball game, give them a food budget so they figure out how much the hot dog and soda costs and whether they can afford the peanuts or the ice cream. Understanding they may have to choose is a great lesson.

Give them challenges. Life isn’t easy so don’t make it too easy for your child. Michael Phelps’ swim coach used to purposefully be late picking up Phelps for swim meets, and took measures such as stepping on his goggles so they would fill with water during a race to throw him off so he’d be stronger in future competitions. I thought it was harsh at the time when Brian’s dad made him work with asphalt on a roof all day in the hot sun to earn money, but the lesson really stuck with Brian and now he knows the value of a dollar.

Keep it real. Whatever amount you choose to give your child on a regular basis, find the sweet spot of an amount that is enough for them to work with but not too much where it is too easy for them. A friend of mine is giving his ten year old $5 a day for spending but he has to buy everything on his own. The idea behind it is a good one, but the dollar amount is so high that the boy can buy whatever he wants. Consider requiring them to put a specific amount in savings—you do it for them—instead of giving them more spending money than they can handle.

Be consistent. I took my eye off the ball because Brian flew under the radar as a “good kid” and as many teenagers do, he took advantage of it. We laugh about it now. I would say the lesson I learned from my mistake would be to keep things simple, and don’t assume things are working! Continue to take every opportunity for learning experiences especially as they get older.

As we watch the Olympic Games, we can’t help but be inspired by both the physical and mental toughness of the athletes. Their upbringing and training have prepared them to perform at their best. We all hope as parents that when our children are faced with the financial challenges that life presents, they’ll be ready for them and finish strong.

Nancy L. Anderson, CFP ® is Think Tank Director and Resident Financial Planner at Financial Finesse, the leading provider of unbiased financial education for employers nationwide, delivered by on-staff Certified Financial Planner™ professionals. For additional financial tips and insights, follow Financial Finesse on Twitter and become a fan on Facebook.